Philippines to open EV incentive applications next year as DTI readies P60 billion program

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Philippines EV incentive program

Highlights

The Department of Trade and Industry will open Electric Vehicle Incentive Strategy applications in January, offering P60 billion in incentives across four EV manufacturers.
Three companies—Vingroup, Mitsubishi Motors Philippines Corp., and Francisco Motors Corp.—have expressed interest, with each eligible for a P15-billion fiscal package under the EVIS program.
The government’s revived RACE program will allocate P9 billion incentives for internal combustion engine manufacturers, reflecting dual support for electrification and conventional vehicles.

EV incentive rollout and application timeline

As reported by BusinessWorld Online, the Department of Trade and Industry expects to open applications in January for carmakers seeking to register under the Electric Vehicle Incentive Strategy, with guidelines set for release within the year.

Trade Undersecretary Ceferino S. Rodolfo said inter-agency meetings are underway to finalize the rules for the program. Executive Order No. 121, which created EVIS, provides P60 billion in incentives for EV manufacturers to support domestic production.

The program sets aside four slots for manufacturers of four EV models, with each carmaker eligible for a P15-billion fiscal package. Mr. Rodolfo said three companies have expressed interest in enrolling models in the program, namely Vingroup, Mitsubishi Motors Philippines Corp., and Francisco Motors Corp.

Auto sector support broadens beyond EVs

The DTI also includes requested funding for the Revitalizing the Automotive Industry for Competitiveness Enhancement program in its second-tier budget proposal for 2027. The government has yet to release the joint administrative order and implementing guidelines for that program.

Mr. Rodolfo said the signatories to the joint administrative order include the DTI, the Departments of Finance and Budget and Management, and the bureaus of Customs, Internal Revenue, and Treasury. The government revives the RACE program after reversing an earlier decision, citing continued market demand for internal combustion engine-powered vehicles.

RACE seeks to provide P9 billion in incentives, or P3 billion each, to three ICE manufacturers. The parallel preparation of EVIS and RACE signals that the Philippines is trying to support both electrification and existing vehicle production capacity as it shapes its automotive manufacturing base.

Our earlier report on planned Philippine government bond reforms explained how a new pricing convention and expected index inclusion could improve liquidity and attract more foreign participation. It also stressed that cheaper funding and stronger markets do not automatically translate into real-economy investment unless fiscal credibility holds and reforms broaden access to financing, deepen the domestic investor base, and support productive spending and a better business environment.

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